Disasters lead to major Q1 loss for Munich Re

BERLIN (AP) - German reinsurer Munich Re says it lost nearly 1 billion ($1.45 billion) in the first quarter after natural disasters in Japan, New Zealand and Australia took their toll.

The firm said Monday it lost 948 million in the first quarter, compared with a profit of 485 million in the same quarter last year.

Munich Re says the group had to cope with reinsurance losses of 2.7 billion in the quarter, almost 2.5 billion more than anticipated.

Chief Financial Officer Joerg Schneider says the Japan and New Zealand earthquakes and the cyclone in Australia within a few weeks of each other combined to create "the most difficult start to a financial year we have experienced for a long time"

Reinsurance companies sell backup insurance to primary insurers so the industry can cover big losses.